Yes, your husband can hire you as an employee of his S Corporation and pay you a salary. You can also become one of the shareholders in his S Corporation and be eligible to receive dividends from the S Corporation in addition to your salary. Your salary and your husband's salary would both be subject to federal and state income taxes as well as medicare and social security taxes. However, any dividends you each received would escape the medicare and social security taxes which combined come to 15.3%. That is the chief advantage of having an S Corp.

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